beyond meat competitive advantage

Meatier Beyond Burgers have helped triple sales since last year. Total sales surged 250% to $92 million, ahead of forecasts for $83 million. Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes founded in 2009 by Ethan Brown. Together they have raised over 681.8M between their estimated 2.0K employees. Beyond Meat will face difficulty maintaining an innovative edge over its peers, who already spend much more on research and development (R&D). Typical EBITDA multiples for food processing are 11.92, which demonstrates that BYNDis seen as an incredibly innovative company, but also that foreseeable growth is fully priced in. It is announced that the company will open a production facility in Shanghai. And spend very little time worrying about the competition. “When we look at our trajectory, the QSR partnerships we’ve cemented, and the hires we’re making to enhance our global expansion, we feel really good about the path we’re on.”. The appeal of this for investors is very clear: It creates an entirely new potential market. A recent poll by Gallup puts the number of vegans in the US as approximately 3% of the population, a small increase compared from the 2% reported in 2012. … Tyson Foods, as discussed above, is currently an investor in Memphis Meats, and was a shareholder of the Beyond Meat company, holding a 5% stake up to the IPO. Fake meat is a highly processed food. She joined Toptal to keep her skills up to date and help entrepreneurs access funding. She also has hands-on experience with startups, helping CyNation and EstateGuru raise funding and expand to the UK. We’ve seen the growing demand for plant-based meat in China, and are thrilled to be able to take advantage of this unique opportunity to offer the Chinese consumer another sustainable protein option. Thank you!Check out your inbox to confirm your invite. With very little to differentiate between competing alternative meat products, the firms with the scale and financial muscle will win in the end. Together they have raised over 2.0B between their estimated 1.8K employees. Hungry Planet offers plant-based meats. The end product would thus not be plant-based or even vegetarian but still environmentally friendly. View the BYND annual company financial performance report by date. He reiterated that Beyond Meat could “hit the jackpot” by steadily improving its taste, quality and nutritional value — while also lowering the price. Does it have a competitive advantage? Beyond Meat trades on the United States NASDAQ exchange under the symbol BYND. Another related category of new products that has attracted considerable investor attention has been that of meal replacements, such as American company Soylent, British company Huel, or French company Feed, who have raised $72.4 million, £20 million, and $21.5 million, respectively. Memphis Meats is creating a meat alternative in the lab much like its competitors, but is using animal stem cells to do so. Beyond Meat does, however, remain one of the fastest growing food companies in the world—its volume sold (fresh + frozen meat) increased over 3.8x from 3.98 million pounds in 2016 to 15.24 million pounds in 2018. Even though sales are growing at the company, the sales multiple implied by the stock price is out of line with anything seen in the food sector. Sinodis will distribute Beyond Beef and the Beyond Burger. I am a Wealth Advisor at Alpenrose Wealth Management, advising a global clientele on multi-generational wealth management, with a passion for impact investing. Beyond Meat is an equal employment opportunity employer. We believe we’re focusing on the right areas to ensure we stay ahead of the curve,” says Brown. This phenomenon is not solely driven by the increase in living standards in the developing world. Being able to deliver your product is a key competitive advantage, and Apple has it down. While there is strong statistical correlation between growing income and growing meat consumption, overall meat consumption has not significantly decreased in the US and in Europe. Nonetheless, Wall Street equity analysts seem unsure of whether the company can sustain such a high valuation, with most having the stock rated as a hold. While Beyond Meat has first mover advantage, as MySpace once did, it has yet to prove what I call “second-mover” advantage, like Facebook (NASDAQ: FB). Plant-based meat has blown up this year, especially after Beyond Meat's blockbuster IPO that sent shares up more than 800%. Like Impossible Foods, Beyond Meat also competes in the Food Processing space. They can be targeted by jokes like, “If you are a vegan who does crossfit, which do you tell people first?” On the other hand, many are starting to change their meat consumption for environmental and health concerns. learn more go beyond breakfast sausage ® learn more go introducing plant-based links coming to the fresh meat aisle throughout october. Beyond Meat is Impossible Foods's #2 rival. The meat-alternative market is a nascent, yet fast-growing, domain with tremendous growth potential. The last point to address is perhaps the biggest obstacle to be solved for alternative meat producers: can the production cost of their products be brought down in line with those seen in animal meats? There is still time to grow before that trend changes. It's clear that the alternative meat space is hot. All Rights Reserved, This is a BETA experience. Memphis Meats is a company established in 2015 that is creating a meat alternative in the lab much like its competitors, but is using animal stem-cells to do so. This startup has also raised $200 million over six funding rounds and recently started exploring the meat alternative market. This Beyond Meat owned facility will be the first outside of Missouri, USA to handle Beyond Meat's innovative approach to texturizing plant proteins, the first step in the company's manufacturing process. This article analyzes Beyond Meat’s stock performance, the history of the company, the market for meat alternatives, and some of its competitors. This gives credence to the idea that the company can convert clients with more traditional diets, and not just vegans, to their products. While chatting with CEO Ethan Brown today, he was very upbeat about the company and what lies ahead. The well-developed and efficiently integrated IT infrastructure of Beyond Meat Changing Consumers Meat Preference allow it to take advantage of emerging innovative technologies (S7, O3). Another element of the topline opportunity is the competitive dynamic. The high cost of alternatives is often cited as a reason for their limited market share and the resilience of meat sales. The superior scale of Beyond Meat’s peers will also challenge what the firm believes to be a critical competitive advantage – its innovation. Workplace diversity can also act as a major business strength, particularly when the organisation intends to operate in the international market. It is now backed by investors such as Khosla Ventures, Google Ventures, and Bill Gates. He would be a seller of Beyond Meat Inc (NASDAQ: BYND), Wayfair Inc (NYSE: W) and Peloton Interactive Inc (NASDAQ: PTON). Beyond Meat Inc, a maker of plant-based burgers and sausages, said it expects to more than double its revenue and report breakeven EBITDA this year, sending the its shares up over 21 percent. © 2020 Forbes Media LLC. Can they scale production sufficiently? Not only is Beyond Meat seeing exponential growth, but chains like Burger King, Carl's Jr., TGI Friday's, and White Castle are jumping on the plant-based burger trend, taking the niche product mainstream. The … The number of vegetarians, according to the poll, was stable at 5% over the same period. BEYOND MEAT: CHANGING CONSUMERS’ MEAT PREFERENCE Beyond Meat, a producer of plant-based meat substitutes, was founded by Ethan Brown and Brent Taylor in 2009 in Los Angeles, California. Beyond Breakfast Sausage ® Go Beyond Breakfast. I would still invest in the company because there is still a relatively low awareness of processed food toxicity in US and rest of the world. By continuing to use this site you agree to our. First-Mover Advantage Is Fading Fast for Beyond Meat As the plant-based meat field gets crowded, BYND stock holders might get left behind By David Moadel, InvestorPlace … The company also optimized its production process into three separate phases, enabling better efficiencies to continue lowering costs along the way. This is also reflected in global data about meat consumption: Meat consumption rates have shot up globally, with production today five times higher globally than 50 years ago. In addition to Beyond Meat, Impossible Foods has raised a significant amount of … While Beyond Meat has first mover advantage, as MySpace once did, it has yet to prove what I call “second-mover” advantage, like Facebook (NASDAQ:FB). The company can maintain its competitive advantage and company profile by continuing to invest time in researching better options to innovate and produce better quality and healthy products. Mr. Shah has more than 25 years of experience in operations, … Timothy Madden, PhD moved How sustainable is Yeti's competitive advantage? Beyond Meat will face difficulty maintaining an innovative edge over its peers, who already spend much more on research and development (R&D). That’s a market cap of $8.8 billion for a company with 2019 revenues of $297 million and no profits. Beyond Meat generates 353% of Impossible Foods's revenue. With very little to differentiate between competing alternative meat products, the firms with the scale and financial muscle will win in the end. (above articles posits exactly that) I would say that it is the biggest risk for the company and the whole fake meat niche. The end product would therefore not be plant-based or even vegetarian, but still an environmentally friendly meat product. Beyond Meat opened for trade July 2 at about $145 per share. Yet, despite all of these wins and important milestones, Ethan Brown believes that the key ingredient to Beyond Meat’s continued success is, without question, innovation. ... A Competitive Landscape. A selection of Beyond Meat products. Oatly cannot be properly classed as a startup, as it has existed since 1990, and has only received one private equity funding round. Memphis Meats is a much younger competitor in the space, established in 2015, and one that takes a slightly different approach. Effectively, he and the other mission-driven folks at Beyond Meat are like mad-scientists with a burning desire to help consumers find and enjoy sustainable protein. Find patties in the frozen aisle, links in the fresh meat aisle. Got (oat) milk? Several of Beyond Meat’s competitors, including Hormel, Nestle, Kellogg, Tyson, Kroger, ConAgra, and Kraft Heinz, enjoy key competitive advantages: Shelf space – … Vegans, those who follow a plant-based diet, can have a bad reputation. However, can the company live up to the hype and satisfy its investors? The mission of the company is focused on plant-based meat alternatives, using pea and other plant protein isolates. It is worth mentioning dairy and egg alternatives in this piece, seeing how successful some of these companies have been and how much funding they have been able to raise. He reiterated that Beyond Meat could “hit the jackpot” by steadily improving its taste, quality and nutritional value — while also lowering the price. Establishing partnerships with global QSRs (McDonald's, Dunkin Donuts, Denny’s, etc.) SWOT analysis is a great tool for analysis of some company. Subscription implies consent to our privacy policy. Its trademark Impossible Burger is now sold at chains such as Burger King, Applebee's, and Cheesecake Factory. In November 2020, Beyond Meat announced sales had only grown by 2% year-on-year compared to an expected increase of 40%. In a letter included with the prospectus for BYND’s IPO, Ethan Brown revealed that he sees the nutritional benefits of meat, but that he aims to remove the connection of meat to the animal that it came from, seeing it instead as “meat by composition and structure—amino acids, lipids, trace minerals, vitamins, and water woven together in the familiar assembly of muscle, or meat” and pushes for a technological innovation in production that bypasses the animal and uses technology to achieve the same composition and texture. Beyond Meat is committed to getting into supermarkets, where large numbers of shoppers rolling carts by the meat section can take a look at its product, probably for the first time in their lives. Memphis Meats does not yet have a commercially viable product. Find Near You . Finally, one point worth highlighting is that meat alternatives are still very expensive compared to traditional animal meat. The superior scale of Beyond Meat’s peers will also challenge what the firm believes to be a critical competitive advantage – its innovation. Many are starting to change their meat consumption, for environmental and health concerns. Next Level Burger. Beyond Meat's CEO describes animal protein as the company's "true north," saying on the plant-based "meat" company's earnings call in July that the company is "maybe 75% of the way there." Let’s Refocus Agri-Food Tech To Solve Today’s Critical Problems, Adapt Or Die: Molson Coors Turns To Partnerships, Non-Alcoholic Beverages For Growth, Brewers, Winemakers And Distillers Have A Little-Known Reason To Cheer Federal Covid Relief, New Napa Treasures From Cuvaison And Brandlin, Consumer Companies Are Accelerating Investments In Regenerative Agriculture To Combat Climate Change, Autonomous Food Delivery Predictions For 2021 And Beyond, A Grocery Revival? 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